FTX Receives Court Approval for Liquidation of Its Crypto Assets Worth $3.4 Billion

The bankrupt cryptocurrency exchange FTX has received approval from the bankruptcy court to liquidate its crypto assets valued at $3.4 billion.

Meanwhile, former CEO Sam Bankman-Fried could remain in jail until his scheduled trial in October, after a U.S. judge denied his requests for pre-trial release.

Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware approved FTX’s request on September 13 to sell its crypto assets, which include solana, bitcoin, ethereum, and other tokens worth $3.4 billion.

In a filing on September 11, FTX disclosed its holdings, with solana dominating at $1.16 billion, bitcoin at $560 million, ethereum at $192 million, and aptos at $137 million. The company’s assets also include brokerage assets, cash, and government-reimbursed assets.

FTX’s liquidation request received support from an ad hoc committee of non-U.S. users and the official creditors’ committee.

Both parties stated that it is important for FTX to reduce the risk of its token portfolio and liquidate its assets in a ‘market-favorable manner’ over an appropriate period with the help of an investment expert to increase cash distribution to users.

The failed cryptocurrency exchange previously revealed plans to select Galaxy Digital for the sale, investment, and protection of its cryptocurrencies to mitigate the risk of price volatility, and also to return funds to affected users in U.S. dollars.

Meanwhile, Judge Dorsey dismissed letters submitted by two FTX users who opposed the liquidation, stating that they failed to ‘establish their ownership stakes’ in bitcoin or cryptocurrency that the debtors might have, given that the other parties agreed to the proposal.

Former FTX chief Sam Bankman-Fried is set to face trial on October 3, 2023, based on a criminal indictment to which he previously pleaded not guilty. Bankman-Fried recently failed to secure a bid for temporary release from jail to prepare for the upcoming trial.